Brewer v Martin

In Brewer v Martin, the Federal Magistrates Court of Australia considered an application for summary dismissal of a portion of the applicants’ claim and an application for indemnity costs. The applicants, Alan Brewer and Brewer Family Investments Pty Ltd, had commenced proceedings against Kaye Martin and two corporate respondents, Amici Corporation Pty Ltd and Amici Property Holdings Pty Ltd, seeking damages for misrepresentation and breach of statutory provisions. The applicants alleged that they had been misled into entering into an employment agreement and a share subscription agreement. The respondents sought summary dismissal of the applicants' claim and indemnity costs on the basis that the applicants had misled the court about the identity of the trustee of a superannuation fund.

The court found that the applicants and their solicitor, Mr Finlayson, had been dishonest with the court, deliberately withholding critical information about the change in trusteeship of the superannuation fund. This conduct led to significant delays and costs for the respondents. The court held that the applicants' and Mr Finlayson's conduct amounted to an abuse of process, justifying an order for indemnity costs and a stay of proceedings until the costs were paid. The court ordered that the applicants pay the respondents' costs on an indemnity basis for the period from 20 April 2011 to 2 December 2011, payable forthwith, and that the proceedings be stayed until the costs were paid.